JP. Morgan Chase & Co. (JPM) next year plans to issue the first U.S. commercial mortgage-backed securities supported by defaulted loans since the 1990s as it revives a practice that regulators used to extricate the nation from the savings-and-loan crisis.

The investment bank has approached rating agencies with two pools of distressed loans that it acquired from European banks and other financial institutions, according to people familiar with the matter.

I usually get these types of things, but honestly I had to read the comments before I could get my head around the implications of this, and still can't grasp it....

One of the comments said:

Quote:"It's a lot like a person backing their bad credit by not paying their bills. You bundle up the unpaid bills in a UBS (unpaid bill security) and then sell it back to creditors, like in never never land..."